http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 7
PETITIONER: THE COMMISSIONER OF INCOME-TAX, BOMBAY
Vs.
RESPONDENT: THE PROVIDENT INVESTMENT CO., LTD.
DATE OF JUDGMENT: 15/05/1957
BENCH: SARKAR, A.K. BENCH: SARKAR, A.K. DAS, S.K. BHAGWATI, NATWARLAL H. MENON, P. GOVINDA KAPUR, J.L.
CITATION: 1957 AIR 664 1957 SCR 1141
ACT: Income Tax-Capital gains-Managing agent of company holding shares therein-Agreement of sale of shares and Managing Agency-Sale of shares-Rclinquishment of Managing Agency by way of Resignation--if amounts to a sale or transfer of Managing Agency-Agreed Statement of Case for reference to High Court--Whether binding on the parties-Indian Income-tax Act, 1922 (XI Of 1922), S. 12B.
HEADNOTE: The respondent company was the managing agent of two other companies holding certain shares therein. D wrote two letters to the respondent on September 14, 1946, offering to purchase some of those shares together with the managing agency and agreeing to pay certain sums as earnest money on the acceptance of the offer and to pay the balance after the transfer of the managing agency was sanctioned by the general body of shareholders. By a letter dated September 30, 1946, the respondent accepted the offer on condition of a sum of Rs. 1 crore being paid out of the consideration as compensation for the loss of the managing agency, and on receipt of the letter, D paid the earnest money....